All those months that the Saab saga was unfolding before our eyes, the Swedish carmaker’s North American operations were excluded from any deal or restructuring plan.
Now the parent company is seemingly closing shop after Monday’s filing for bankruptcy and the appointment of two receivers who, unless something dramatic occurs, will oversee the company’s liquidation.
Saab Cars North America wants to avoid being declared bankrupt or liquidated. Therefore its Chief Operating Officer, Tim Colbeck, announced on Wednesday, December 21, that the company has appointed McTevia & Accociates, a specialist in corporate turnarounds, as an outside administrator.
“We believe this is the best and most appropriate course of action for our stake holders, to keep this action out of court”, Colbeck told Autonews. “We feel this is the best solution for creditors, dealers and customers.”
Colbeck explained that the administrator was appointed to ensure the fair treatment of creditors. Nevertheless, he admitted that the company’s creditors could force Saab Cars North America to follow in the footsteps of its parent company – that is, ask for court protection or even file for bankruptcy if no viable solution is found.
Saab North America is cooperating with its dealers to dispose of their inventory, but hasn’t yet determined if the lack of a warranty means that they have to be sold as used or if they can still be sold as new cars.
In any case, Colbeck stated that they are trying to find a way to honor the warranties: “We are aggressively looking at ways to reopen our warranty business in North America”, he said, while also noting “GM has come in and offered to honor warranties on ’09 and prior year vehicles. We are happy that they are doing that.”
So, is Colbeck angry that GM blocked every rescue deal? “No, life is too short to be angry, said Colbeck. “Obviously I would like a different outcome, but GM thought that is what they needed to do and they were able to do it.”
